MBS RECAP: Month-End Buying Boosts Bond Markets

Posted To: MBS Commentary

European traders were month-end sellers, pushing rates higher overnight US bond markets battled back during the domestic session Treasuries were green at the 3pm close and MBS are still green, barely Not much impact from economic data, although data was generally supportive of longer-term themes (slowing economy) Bond markets had a completely inoffensive month-end session with Treasuries and MBS ending up essentially unchanged versus yesterday's excellent (relative) closing levels. When compared against 3 weeks ago, current levels leave a bit to be desired , but compared to where it looked like we were heading at the …read more

Mortgage Rates End Week at Lows

Posted To: Mortgage Rate Watch

Mortgage rates moved just slightly lower in most cases, to end the week at the best levels since April 19th. Mor importantly, the past 3 days of improvements go a long way toward defeating a worriesome trend toward higher rates that began in early April. With the recent gains, the average conventional 30yr fixed rate is back down to 3.625% on top tier scenarios after having briefly moved up to 3.75%. That said, keep in mind that rate sheet offerings have varied more widely than normal from lender to lender due to recent market volatility. …read more

Does The Bank of Mom and Dad Help Homeownership?

Posted To: MND NewsWire

Does a financial boost from mom and dad make it more likely a young person will buy a home? It depends. And that might change. Those statements are more or less the bottom line from a working paper prepared by three University of Southern California professors, Dowell Myers, Gary Painter, and Julie Zissimopoulos that is part of a larger study on parental financial transfers to adult children. The three based their work on two data sets, Panel Study of Income Dynamics (PSID) and the Health and Retirement Survey (HRS), that provide information on parental financial transfers, …read more

CFPB Offers Plans for TRID; Upcoming Events; Who’s Afraid of HMDA?

Posted To: Pipeline Press

“They” say plenty of things about time flying as you grow older. (“Life is like a toilet paper role – the closer you get to the end the faster it goes” comes to mind.) HMDA changes are a couple years out – so why are companies worried about them now? Because time flies. In my discussions with compliance & QC folks around the nation, the HMDA concern revolves not around borrower issues – most of the data is already being collected by lenders – but around the statistical testing, increased regulatory concerns, the increase in potential …read more

MBS Day Ahead: Bonds Fighting For Technical Victory, With Fundamental Caveats

Posted To: MBS Commentary

Bonds right on the edge of confirming positive shift We need to hold ground today in order to confirm Even then, we have to wonder about the “month-end” effect Data could have an impact, but it depends on size of beat/miss The Fed is looking for inflation and not finding too much of it based on Wednesday's FOMC Announcement. The Fed's statement helped bond markets recover quite a bit of recent weakness as the text removed the previous reference to inflation showing signs of picking up. Markets are clearly skeptical as to whether or not the …read more

MBS RECAP: Post-Supply Rally Brings Bonds Back to Their Happy Place

Posted To: MBS Commentary

Bonds traded either side of unchanged early in the day Little, if any response to GDP Bigger move seen after the end of the auction cycle Not a huge rally, but enough to re-enter previous range Bond market reaction to Treasury auctions has been sporadic at best for several years now. They're just not the market movers they used to be. But occasionally, the overall start and stop of an entire week's auction cycle does something to change the tone and shift the balance of buying and selling. Long-time MBS Live member Jeff Anderson coined the …read more

Mortgage Rates Back Down to Last Week’s Range

Posted To: Mortgage Rate Watch

Mortgage rates continued lower for a second straight day, ultimately making it back to levels not seen since last Tuesday. Today’s improvements are partly an extension of yesterday’s reaction to the Fed Announcement, but also acknowledge the end of this week’s Treasury auction process. This often involves a slight artificial pressure toward higher yields beginning on Tuesday with the pressure being released after the week’s last auction on Thursday afternoon. Mortgage rates aren’t directly linked to Treasury yields, but they do tend to move in the same direction by roughly similar amounts each day. Case …read more

Homeownership near its lowest in history

Posted To: MND NewsWire

Home sales may be rising, but homeownership in the United States is heading down once again. After gains in the second half of 2015, the homeownership rate fell to just 63.6 percent , seasonally adjusted, in the first quarter of this year, according to the U.S. Census Bureau. Homeownership hit a high of 69.4 percent in 2004, during one of the biggest housing booms in history. That was also when mortgage lending was arguably at its loosest level in history. The homeownership rate is now just one-tenth of 1 basis point higher than its all-time low …read more

Home Prices Closing on 2006 Peak

Posted To: MND NewsWire

Home prices rose 0.7 percent from January to February according to Black Knight Financial Services. The company’s Home Price Index (HPI) was at $245,000 a 5.3 percent increase from February 2015. The company said that there is still strong upward monthly price movement in several states and metro areas. Washington led with 1.8 percent appreciation over January followed by Colorado at 1.7 percent. The remainder of the top five were Oregon, California with monthly gains of 1.3 percent and Hawaii at 1.2 percent. The strongest metro areas were San Jose with a 2.4 percent increase, and …read more

Completely Different Definition of ‘Underwater’ And Its Impact on Housing

Posted To: MND NewsWire

What has just moved from fifth place in the World Economic Forum’s list of global risks to the top of the heap? The “failure of climate change mediation and adaptation” now ranks ahead of weapons of mass destruction, water crises, large-scale involuntary migration, and severe energy price shock in terms of global impact. Freddie Mac cites this in a new report on its Insights blog discussing what climate change can mean to housing, specifically the associated risk of flooding. At the current rate of climate change, rising seas, changing weather patterns, and increasing temperatures accompanying it …read more